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Sector Update: Financial

Financial stocks were leaning lower pre-bell Monday, with the State Street Financial Select Sector SPDR ETF (XLF) declining by 0.1%.The Direxion Daily Financial Bull 3X Shares (FAS) was 0.3% lower and its bearish counterpart Direxion Daily Financial Bear 3X Shares (FAZ) was up 0.4%.Oppenheimer Holdings (OPY) stock was down more than 1% after the company said its Oppenheimer & Co. unit agreed to pay $70 million to settle a class-action lawsuit tied to its cash sweep program, avoiding a trial where damages could have exceeded $440 million.

$OPY

Sector Update: Health Care

Health care stocks were edging higher pre-bell Monday, with the State Street Health Care Select Sector SPDR ETF (XLV) and iShares Biotechnology ETF (IBB) marginally advancing.Organon (OGN) has agreed to be acquired by Sun Pharmaceutical Industries for $14 per share in an all-cash deal with an $11.75 billion enterprise valuation, the companies said. Shares of Organon were up more than 17% premarket.

$OGN

Sector Update: Consumer

Consumer stocks were mixed premarket Monday, with the State Street Consumer Staples Select Sector SPDR ETF (XLP) down 0.2% and the State Street Consumer Discretionary Select Sector SPDR ETF (XLY) marginally advancing.Domino's Pizza (DPZ) stock was down more than 6% after the company reported a decline in fiscal Q1 earnings, while revenue missed analysts' estimates.

$DPZ

Sector Update: Tech

Technology stocks were advancing premarket Monday, with the State Street Technology Select Sector SPDR Fund (XLK) up 0.1% and the State Street SPDR S&P Semiconductor ETF (XSD) 0.7% higher.Qualcomm (QCOM) shares were up more than 9% after a TF International Securities analyst said that industry checks suggest Microsoft-backed (MSFT) OpenAI is working with the semiconductor company and MediaTek to develop smartphone processors.

$MSFT$QCOM

National Bank Says Crude Oil Price Shock Could Deliver Significant Fiscal Windfall For Canadian Governments

After surging nearly 50% since the onset of the United States-Iran conflict, this crude oil price shock is one of the largest on record since the inception of WTI futures trading in the mid-1980s, said National Bank of Canada.While the change is historically significant in percentage terms, the same can't necessarily be said about where the price stands outright, noted the bank.That's true for the US dollar-denominated price, at least. The price of WTI in Canadian dollar (CAD or loonie) terms is near a record high early in Q2, recently trading just below C$160/barrel -- a level reached only once before, briefly, during the 2022 Russian invasion of Ukraine, stated National Bank.Canadian producers -- and governments -- could, as a consequence, be poised to capture one of the most lucrative quarters on record in terms of royalty revenues, added the bank. How long this fiscal windfall will last is uncertain, but if sustained, its impact on provincial and federal finances will be "significant" -- particularly for oil-levered provinces such as Alberta.Though the net impact of this crude shock on the Canadian economy -- and its implications for monetary policy -- has yet to be fully revealed, National Bank urges governments to capitalize on this opportunity.Most notably, this can be done by directing any additional, unbudgeted revenues to the bottom line or toward productivity-enhancing investments in the national interest. This federal government has promised to "spend less to invest more" -- a sentiment that will once again be tested in Tuesday's Spring Economic Update, according to the bank.

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NY Crude Now Up 0.7% at Just Over US$95, Was Near US$96.30; Brent Crude Now Up 1% at US$106.36, Was Near US$107.60

NY Crude Up 2% at Near US$96.30 and Brent Crude Up 2.2% at Near US$107.60

Brent Crude Up 2.4% at Near US$107.90 As US-Iran Peace Talks Stall

Crude Oil Prices Rise on Stalled U.S.-Iran Peace Talks

Crude oil prices rose on Monday as talks to end the war between the U.S. and Iran remain frozen and flows through the crucial Strait of Hormuz continue to be disrupted.Brent crude at last look gained 2.7% to US$108.17/barrel and West Texas Intermediate crude climbed 2.4% to $96.63/barrel. The U.S. and Iran appear to still be far apart on issues including Iran's nuclear ambitions and the reopening of the strait, Reuters said in a Monday report."The diplomatic stand-off means that every day 10-13 million barrels of oil fail to get to the international market, worsening an already tight oil balance. Therefore, there is only one direction for oil prices to go," Reuters quoted PVM Oil Associates analyst Tamas Varga as saying.Goldman Sachs raised its fourth-quarter oil price forecasts to $90/barrel for Brent and $83/barrel for WTI, citing reduced output from the Middle East, the report said.

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Sector Update: Health Care Stocks Fall Late Afternoon

Health care stocks were lower late Friday afternoon, with the NYSE Health Care Index down 1.1% and the State Street Health Care Select Sector SPDR ETF (XLV) shedding 1.4%.The iShares Biotechnology ETF (IBB) fell 1%.In sector news, the US Food and Drug Administration said it was launching regulatory actions to back the development of psychedelic therapies to treat mental illness. The move builds on President Donald Trump's recent executive order directing the Department of Health and Human Services to accelerate access to treatments for people with serious mental illness, the FDA said.In corporate news, HCA Healthcare's (HCA) Q1 results exceeded market expectations, but the hospital operator said it did not see its usual seasonal lift in admissions amid declines in respiratory activity. Its shares dropped 9%.Organon (OGN) shares surged 32% amid a report that India's Sun Pharmaceutical Industries was planning a $13 billion bid for the company.Compass Pathways (CMPS) shares rose 4.8% after it said Friday the US Food and Drug Administration has granted its rolling review request for its new drug application and selected COMP360 for the Commissioner's National Priority Voucher program for treatment-resistant depression.Sanofi (SNY) priced a 2.3 billion euro ($2.7 billion) offering of notes under its Euro Medium Term Note program. Its shares were down 1.5%.

$CMPS$HCA$OGN$SNY

Sector Update: Financial Stocks Decline Late Afternoon

Financial stocks fell in late Friday afternoon trading with the NYSE Financial Index declining 0.4% and the State Street Financial Select Sector SPDR ETF (XLF) decreasing 0.7%.The Philadelphia Housing Index dropped 0.5%, and the State Street Real Estate Select Sector SPDR ETF (XLRE) shed 0.2%.Bitcoin (BTC-USD) fell 0.3% to $77,594, and the yield for 10-year US Treasuries decreased 2.1 basis points to 4.30%.In economic news, the University of Michigan consumer sentiment index was revised upward to 49.8 for April from 47.6 in the preliminary estimate, compared with expectations for a smaller upward revision to 48.5 in a survey compiled by Bloomberg.In sector news, US Attorney General for the District of Columbia Jeanine Pirro ordered her office to close its investigation into Federal Reserve Chair Jerome Powell.In corporate news, Western Union (WU) shares dropped 4.2% after the company reported Q1 adjusted earnings that fell more than Wall Street expected.Apollo Commercial Real Estate Finance (ARI) completed the sale of its $9 billion commercial real estate loan portfolio to Athene Holding, following an agreement announced in January. Apollo Commercial's stock rose 0.7%.KKR (KKR) and investment management company Capital Group are planning to launch a public-private credit fund in Asia in H2, Bloomberg reported. KKR shares rose 0.1%.Blackstone (BX), KKR and Apollo Global Management (APO) are negotiating to take control of Medallia from Thoma Bravo, after the software maker defaulted on loans of about $3 billion, the Wall Street Journal reported. Blackstone shares fell 0.5%, and Apollo lost 0.2%.

$APO$ARI$BX$KKR$WU

Sector Update: Consumer Stocks Mixed Late Afternoon

Consumer stocks were mixed late Friday afternoon, with the State Street Consumer Staples Select Sector SPDR ETF (XLP) down 0.5% and the State Street Consumer Discretionary Select Sector SPDR ETF (XLY) rising 0.9%.In sector news, US consumer sentiment improved from an initial April estimate, but remained at a record low as near-term inflation expectations logged the biggest monthly increase in a year, final University of Michigan survey results showed Friday. The main sentiment index fell 6.6% to 49.8 from last month. The consensus in a Bloomberg poll expected the April reading to be revised to 48.5 from the preliminary estimate of 47.6.In corporate news, Boyd Gaming (BYD) shares dropped 6% after it posted Q1 results that fell short of analysts' estimates.Procter & Gamble (PG) reported stronger-than-expected fiscal Q3 results on Friday, while the consumer goods giant reiterated its full-year outlook. Its shares rose 2.4%.Charter Communications (CHTR) reported Q1 earnings below market estimates as revenue declined annually, driven by weakness in the residential video and Internet segments. The shares slumped 26%.Stellantis (STLA) plans to direct the bulk of its future investment toward Jeep, Ram, Peugeot, and Fiat under Chief Executive Antonio Filosa's turnaround strategy, Reuters reported. The carmaker is set to unveil the long-term plan in May, focusing on strengthening its most profitable global brands while streamlining its sprawling 14-brand portfolio, the industry's largest, the report said. Stellantis shares were down 2.8%.

$BYD$CHTR$PG$STLA

$AMZN$GOOGL$INTC$META$MSFT

Sector Update: Tech Stocks Gain Late Afternoon

Tech stocks were higher late Friday afternoon, with the State Street Technology Select Sector SPDR ETF (XLK) rising 2.7% and the State Street SPDR S&P Semiconductor ETF (XSD) jumping 5.9%.The Philadelphia Semiconductor index climbed 4%.In sector news, the Trump administration is supporting Elon Musk's AI company xAI in its suit challenging Colorado's new law aimed at preventing discrimination by AI systems, Bloomberg reported Friday, citing a court filing. The law, set to take effect June 30, will regulate how businesses use AI tools in decisions involving employment, health care, housing and other areas, the report said. The US Department of Justice argued the measure violates the Constitution's Equal Protection Clause and would distort model outputs in ways that "discriminate based on race, sex, religion, and other protected characteristics," the report added.In corporate news, Intel (INTC) shares surged nearly 23% after the chipmaker reported late Thursday fiscal Q1 results above Wall Street's estimates as it benefited from AI-driven demand for its products.Meta Platforms (META) said Friday it signed an agreement to incorporate tens of millions of Amazon (AMZN) Web Services Graviton cores into its computing network. Meta shares rose 2.5%, and Amazon gained 3.6%.Alphabet's (GOOGL) Google is planning to invest $10 billion in Amazon-backed Anthropic with the possibility of an additional $30 billion, Bloomberg reported, citing a statement from Anthropic. Google has committed to investing $10 billion now at a $350 billion valuation, and could invest an extra $30 billion if Anthropic hits performance targets, the report said, citing the company. Alphabet shares rose 1.7%.Alphabet's Google and Microsoft (MSFT) are set to take part in a bidding process to select operators for a US data center being developed by SoftBank, Nikkei Asia reported. The decision, potentially coming as early as this month, is linked to a 10-gigawatt data center planned in Piketon, Ohio, which is part of a broader investment expected to eventually reach $500 billion, the report said. Microsoft shares added 2.1%.

Sector Update: Consumer

Consumer stocks were mixed late Friday afternoon, with the State Street Consumer Staples Select Sector SPDR ETF (XLP) down 0.5% and the State Street Consumer Discretionary Select Sector SPDR ETF (XLY) rising 0.9%.In corporate news, Boyd Gaming (BYD) shares dropped nearly 6% after it posted Q1 results that fell short of analysts' estimates.

$BYD

Sector Update: Health Care

Health care stocks were lower late Friday afternoon, with the NYSE Health Care Index down 1.1% and the State Street Health Care Select Sector SPDR ETF (XLV) shedding 1.4%.The iShares Biotechnology ETF (IBB) fell 1%.In corporate news, Sanofi (SNY) priced a 2.3 billion euro ($2.7 billion) offering of notes under its Euro Medium Term Note program. Its shares were down 1%.

$SNY

Sector Update: Financial

Financial stocks were lower in late Friday afternoon trading, with the NYSE Financial Index down less than 0.1% and the State Street Financial Select Sector SPDR ETF (XLF) decreasing 0.7%.The Philadelphia Housing Index was slipping 0.5%, and the State Street Real Estate Select Sector SPDR ETF (XLRE) was shedding 0.2%.Bitcoin (BTC-USD) was decreasing 0.3% to $77,594, and the yield for 10-year US Treasuries decreased 2.1 basis points to 4.30%.In corporate news, Blackstone (BX), KKR (KKR), and Apollo Global Management (APO) are negotiating to take control of Medallia from Thoma Bravo, after the software maker defaulted on loans of about $3 billion, The Wall Street Journal reported. Blackstone shares were down 0.6%, KKR was easing 0.1%, and Apollo decreased 0.2%.

$APO$BX$KKR

Update: WTI Oil Falls as a Report Says Peace Talks Between the U.S. and Iran May Resume

West Texas Intermediate (WTI) crude oil fell on Friday following a report that said Pakistani officials expect another round of talks between the United States and Iran.WTI crude oil for June delivery closed down US$1.45 to settle at US$94.40 per barrel, while June Brent oil was last seen up US$0.15 to US$105.22.Bloomberg News reported Iranian Foreign Minister Abbas Araghchi and a team of negotiators are expected to arrive in Islamabad late on Friday for talks with a U.S. delegation already in place. The Wall Street Journal said U.S negotiators Steve Witkoff and Jared Kushner will travel the Pakistan capital for the talks that could re-open the Strait of Hormuz.The Strait is the chokepoint for exports from Persian Gulf nations, which supplied 20% of daily oil demand prior to the Feb. 28 start to the war, which also trapped shipments of of diesel and jet fuel, as well as petrochemical feedstocks and fertilizers."What began as a crude oil supply shock linked to the effective closure of the Strait of Hormuz has now broadened into a multi-commodity disruption. The implications are no longer confined to energy markets alone but are spreading into industrial production, transportation, and ultimately agriculture and food price," Ole Hansen, head of commodity strategy at Saxo Bank, wrote.Still, a quick end to the war is unlikely to produce a quick end the largest-ever energy supply shock. The U.S. Pentagon on Thursday warned it may take six months to clear mines laid in the Strait, the Washington Post reported on Thursday."That is a completely different timescale from what the financial market is pricing. Even a political deal tomorrow does not immediately reopen the strait," Ole Hvalbye, a commodities analyst at SEB Research, wrote.

June WTI Crude Oil Contract Closes Down US$1.45; Settles at US$94.40 per Barrel